Credit card processing and merchant services in Medicine Hat, AB
Medicine Hat wants a City licence from every business operating there, priced by tier, and a business based outside the city pays a $500 non-resident fee on top. GST is the only sales tax.
Medicine Hat counted 63,271 residents at the 2021 Census, 11 more than in 2016. Statistics Canada's Medicine Hat census agglomeration, which also takes in Redcliff and Cypress County, came to 76,376, down 0.2%. It's a steady market, and two of the first costs a new business there runs into are its City licence and its card fees.
The City says all businesses operating in Medicine Hat need a valid City business licence, with fees that vary by business type and location. Its 2026 schedule starts at $50 for a one-year Tier 1 licence and reaches $2,750 for Tier 5, and Tiers 2 and 3 can also be bought for three years, at $550 and $1,100. A business based outside the city adds a $500 non-resident fee to its tier licence. So a contractor from Redcliff or Cypress County who takes jobs in town should budget for both.
The schedule is due to change. Council kept the current fee structure for 2026 and set changes to take effect on January 1, 2027, with the non-resident fee staying at $500. Check which year's fees apply before you renew.
Home businesses have two details to know. The City asks for written authorization from the land owner as part of a home-based licence application, so a renter needs the landlord's sign-off before applying. And a day home caring for six or fewer children doesn't need a licence at all.
Tax is the light part. Alberta has no PST, so a taxable sale carries only the 5% GST, and registering becomes mandatory once taxable revenue passes $30,000 in a calendar quarter or over four consecutive quarters.
For the card side, tap to pay or a mobile card reader suits a home business, and POS terminals suit a shop counter. We price on interchange-plus with no cancellation fees. The Alberta page covers the provincial rules, and a free statement review tells you what each card is costing you.
Rules that matter in Medicine Hat
Medicine Hat business licence tiers and fees
The City of Medicine Hat requires a valid City business licence for all businesses operating in Medicine Hat, home-based businesses included. A day home, a childcare operation for six or fewer children, doesn't need one. For a home-based business, the City asks for written authorization from the land owner as part of the licence application.
The City's 2026 fee schedule lists one-year licences at $50 (Tier 1), $225 (Tier 2), $450 (Tier 3), $900 (Tier 4) and $2,750 (Tier 5), with three-year licences at $550 (Tier 2) and $1,100 (Tier 3). A non-resident business pays $500 in addition to its tier licence. Council kept this structure for 2026 and set changes to take effect January 1, 2027, with the non-resident fee staying at $500.
Sources: City of Medicine Hat, Business License; City of Medicine Hat, Home Business; City of Medicine Hat, Building, development and business fees; City of Medicine Hat, Council highlights, August 17, 2026
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Common questions
Does every business in Medicine Hat need a City licence?
Nearly every one. The City says all businesses operating in Medicine Hat require a valid City business licence, and that covers home-based businesses too. The exception it names is a day home, a childcare operation for six or fewer children, which doesn't need one.
How much does a Medicine Hat business licence cost?
It depends on the tier. The City's 2026 schedule lists one-year licences at $50 for Tier 1, $225 for Tier 2, $450 for Tier 3, $900 for Tier 4 and $2,750 for Tier 5, with three-year options at Tiers 2 and 3. Businesses based outside the city add a $500 non-resident fee. Council has set fee changes for January 1, 2027.
Does a Redcliff business pay extra to work in Medicine Hat?
Yes, if it operates in Medicine Hat. The City's fee schedule adds a $500 non-resident fee, on top of the tier licence, for a business based outside the city, and Redcliff is a separate municipality. Council's August 2026 decision keeps that fee at $500 when the new fee structure starts on January 1, 2027.
Can I run a business from a rented house in Medicine Hat?
You'll need the owner on board first. The City asks for written authorization from the land owner to operate a home-based business, and that authorization goes in with your business licence application. Get it from your landlord before you apply, and check what your lease says about running a business from the house.
What is the cheapest way for a Medicine Hat home business to take cards?
Often your phone. Tap to pay turns it into a card reader for in-person sales, and a payment link from the virtual terminal covers clients you bill later, with no countertop hardware for either. On interchange-plus pricing, Interac and credit card sales each show at their own cost, so you can see where the money goes.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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